Hi, the largest holding i can find on RP Data in one name, based in NSW shows 12 properties. Not to say there’s not more in other names. and FYI there’s no purchases made in that name in 2012. They nearly all appear to be highsets also.

Another company name owns 8 in Dysart, based in NSW. these were all purchased on 2006/07.

I hope this quenches your curiosity as to what some big movers in Dysart are doing.

It does not mean anything for the townships, the projects are still going ahead, and so are Palmers plans to sue for defamation of the SMH after the article was written.

http://www.theaustralian.com.au/business/breaking-news/axed-40bn-contract-wont-affect-mine-palmer/story-e6frg90f-1226352839367

There are many stories as to the future of this mine and the reasons for closure. Just to clarify, the mine is not closing because of property prices. They really don’t mean that much to them. I believe you will find this mine come back to operation in the VERY near future. some major contracts have still n been told they are going ahead within this mine, and there are also talks of a new company taking over.

Lets just wait and see. I would not rush to sell a house if you have one there. However if it is clear cut and the entire mine shuts with no transfer of employees in the area than yes it is a major setback, however I do not believe this will be the case.

Hi PY,

Emerald has been and will continue to be a great place to invest, with continual rental increases over the last several years and capital growth to match, the town still has affordable housing to allow Emerald to grow further as a regional hub. I see Emerald as a very stable, long term investment mainly for capital growth and the extra rent is a good bonus. I have invested personally in Emerald for years and continue to today. I have also lived there so I have a lot of local knowledge which only helps my planning and investing there.

The impact of the Galile Basin has not even began for Emerald, It will boost the housing market gradually over the coming years I believe.

Kind Regards

A very important factor to note when investing in mining regions is that most of the towns you look at investing in have very small population (less than 30,000 people). couple this with development releases at different times of the year as they are not steady like we see in the capital cities, and projects which have construction phases and operational phases. many of these towns have very strong cycles. both the highs and lows are generally extremes.

It is important to look into the future as with any property investment and ask yourself where you think the town will be in 10 years. if you like what you foresee it to be, then it is most likely a good investment. the next thing to do is to find the right time in the market to buy. Have a look at what is in demand for rent in the town, is it new or old housing. units that may be more affordable or a grandiose house?

to relate this back to Moranbah, it is a very small town with a population of less than 10,000 people. there has been and will continue to be a large number of construction projects occur over the next 7 years in the mining industry. Moranbah has seen a lot of owner occupiers sell over the last 6 months to investors, this has occurred at the same time as one of the regions largest employers BMA has been going through some industrial action, only to have that escalate over the last 6 weeks with strikes etc.

To put this action into perspective for current and prospective property investors, this action has absolutely nothing to do with housing prices in Moranbah. the issue is far greater than that. There are approximately 20 demands from 3000 union represented employees, and the closes one has to housing in Moranbah is they want quality accommodation for themselves and their families. Not donga’s or 3 bed shacks. As a result of the action, BMA have not hired or continued with the re-engagement of contractors for many operation and construction projects until the dispute is resolved.

Recently as a part of more civil Enterprise Bargaining Agreements in Blackwater, a very positive result was had for property and the town where an increased subsidy scheme was implemented for people who buy in the area. whilst people think this outcome would be bad for property investing in Moranbah, you would be wrong. It is in everyone’s interest that Moranbah grows as a viable service hub for the region. If you want to invest in short term accommodation, buy a motel.

My view is that once the Enterprise Bargaining is over, there will be once gain another shift in both renting and buying in Moranbah. Companies like BMA need a town like Moranbah to be more than what it is, a motel town. the population demand is there and will continue to grow into the future. The way it is managed needs some re-thinking however. Personally, I find it exciting to see what a town like Moranbah will look like in 10 years. have a look at Port Headland and Karratha and how far they have come whilst maintaining high rents and property prices. Do you think they never had down times due to issues like these?

Demand at present is for modern accommodation which is relatively new and also affordable for what you get in Moranbah. If you purchased a house in the midst of these times above and it wasn’t on par with the current demands than needless to say you will unfortunately experience a mining town at its worst.

Believe it or not,I made a higher return on my investing in the first 18 months of the GFC in mining towns than any other time, while people who literally built right next door lost money. Investing in property is no different than anything else. You must assess supply and demand and look at how you will make the greatest, sustainable return for your investment. If you look at it as simply as “build it and they will come” then unfortunately you are going to see hard times, no matter where you invest.

Hi Roger, the markets of the USA and the mining areas of QLD are completely different. One has growth drivers the other doesn’t. One has low unemployment, the other doesn’t. One has high disposable income, the other does not.

Can you elaborate on why you feel the prospects of mining areas in the long term may be limited?

Hi Sporty, Im not going to comment on individual builders here however I do know some of there packages arent as turn key as other builders, which is factored into the price obviously. So just make sure that you are happy with the level of inclusions and that it is what you are looking for or if not, be sure to ask prior to going to contract.

Hi Schmoo,

If your investing in these areas capital growth is a large factor to your investment. You can have cash flow and CG so why not take both if they’re on offer. I will post a blog on Moranbah shortly (see link below). The growth drivers there are huge, not the most diversified town or economy however still poised for more capital growth given what rental yields are doing.

how much cash flow you are after will depend on the town you look at. There are towns that will see good rental increases over the next few years also